Sporto-Track

Vyaspure
Content
• Vision and Mission • Manufacturing
process
• Introduction
• Challenges & Risks
• Basic idea & Product
Range • Funds availability
• Basis and • Project Cost
presumption
• Machinery cost
• Implementation
Schedule • Raw material and
other costs.
• Supporting Structure
• Market Potential • Cost benefit
analysis
• USP
• Break Even Point
• Quality and
Standards • Future perspective
Sporto-Track
Vision & Mission

• To provide the sustainable livelihoods for

economically weaker sections of society, by
skilling and enhancing the existing ones.
• Provide institutional and capacity building
support.

Sporto-Track
Introduction

• Track suit.
• Synthetic & natural interlock knitted fabric
• Variety in colors, sizes along with for specific
target group.
• Top and Trouser.
• Domain knowledge to the concerned group.
• Indigenous raw material and machinery

Sporto-Track
Basic Idea
• Enhance the potential of concerned group
• Tailoring skills of rural women.
• Development of ToT
• Silayee Teachers- PRI
• RSETI
• Wide & trendy product range
• Track suits, sports wear
• Hoddies
• Lower
• Fashionable kurties
• Leggings

Sporto-Track
Product Range

Sporto-Track
Basis & Presumptions
• Proposed quantity to be produced 4000+ unit/year
• Maximum utilization achieved at the 3rd year.
• Working area owned by member itself.
• Costs of machinery, taken directly from the running project
• Depreciation has been considered at
• 10% on plant and machinery,
• 10% on office furniture and fixtures
• 10% on workshop accessories.
• Interest rate on capital loan has been taken @ 12% per annum.
• Amount of margin money required is 20%-25% of total investment.

Sporto-Track
Implementation schedule
Sr. No. Activities Period
1 Selection of Site/working shed 1 Week
2 Registration with industry Department 3 Months
3 Arrangement of finance(CIF, credit linkage with bank) 1 Month
4 Procurement of machinery and equipments 1 Month
5 Working place erection and electrification 1 Week
6 Arrangement of raw material including packaging 1 Month
material
7 Training of SHG members 1 Month
8 Miscellaneous Work 1 Week

Sporto-Track
Supporting Structure

• HPSRLM
• Backward- forward linkages.

• RSETI
• Rural entrepreneur development

• Bank linkages
• MUDRA Loans: Shishu, Tarun, Kishore

Sporto-Track
Market potential &
Strategy
• Market Potential
• Labour intensive industry

• Strong demand growth

• Favourable Govt. policies

• Regular market availability

• Rural haats, local and National level fairs

• Linkage with other line departments

• Sports academies

• Target group
• Special focus on local schools and youth

• Age group specific products

• Quality, market and price analysis

• Focus on competitors

• On site product delivery

• Utilization of NRLM network

Sporto-Track
Unique selling
proposition
• Excellent quality stylish tracksuits.
• Zipped pockets, inseam pockets and set in pockets.
• Stretchable and climacool texture.
• Regular fitting, full sleeves, full length pants,
coufled bottom with Indian standards.
• Machine washable.
• Purchase of each unit empowers the rural women

Sporto-Track
Quality control &
standard
• Raw material from global organic textile
standards (GOTS),Fair wear foundation
• Customized track suits.
• Special care for quality procurement of raw
material

Sporto-Track
Manufacturing Process
Identification
Inspection of
of supplier of Cutting of fabric
Fabric
fabric

Garment Stitching
Quality Washing section
Assurance section

Packaging
Final Finishing
and
of product
marketing

Sporto-Track
Challenges & Risks
• Market penetration
• Lack of experience and training
• Competition from established firms
• Marketing skills
• Quality packaging, advertisements and branding
• Transportation
• Sustainability of SHG
• Book keeping, transparency, accountability
• Regular production

Sporto-Track
 S W O T
•Domain Knowledge •Lack of latest design •Economic •Sustainability of SHGs

•Existing Brand •Distant raw material

•Social •Competition
suppliers
•DLF & BLF
•Lack of Market •Environmental
•Wide Product range penetration

Sporto-Track
Possible Solutions

• Creation of marketing channels

• Training support
• Sensitization workshop for marketing and learn
from the examples like Namaste Dharmashala
by Shiv Shakti, Kudumshree etc.
• Convergence with MGNREGA, PMGSY, AGEY.
• Regular meetings and continuous support from
institution.
Sporto-Track
 Availability of
funds
Sr No. Funds Type Amount in Lakhs
1 Start up cost 0.03
2 Revolving Fund 0.40
3 Community Investment Fund 0.50-1.10
4 Savings of SHGs 0.10-0.12
5 Bank Linkage 1.00-3.00
Total Availability 2.03-4.53

Sporto-Track
Project Cost Includes
• Types
• Machinery Cost
• Raw-material
• Marketing
• Infrastructure
• Labour
• Production
• Transportation
• Packaging and Branding

Sporto-Track
Infrastructure &
other costs
Sr. No. Particulars Unit required Total cost per year in lakhs
1 Working area 800 sqft. 0.20
2 Storage 1000 sqft. 0.24
Total 0.44

Sporto-Track
 Machinery &
Equipments
Sr. No. Particulars Units Per unit cost Total in Lakhs
1 Sewing Machine with stand and motor 05 0.10 0.50
2 Overlock stitching machine with motor 01 0.12 0.12
3 Fabric cutting machine 01 0.60 0.60
4 Cutting table 01 0.10 0.10
5 Washing Machine with drier (12 kg) 01 0.20 0.20
6 Electric iron 02 0.01 0.02
7 Workshop accessories LS ----- 0.10
TOTAL -A 1.64
Other fixed Assets
Erection and installation 0.03
Workshop Furniture 0.10
Pre operating expanses 0.05

Total -B 0.18
Grand total A+B 1.82
Sporto-Track
 Working Capital
Profile Nos. Remuneration per month(Min)
Fabric cutting expert 2
Stitching tailors 4
Over locking expert 1
3600X10=36000
Washing 1
Iron and packaging 1
Transportation and Marketing 1

Sporto-Track
Raw Material Cost
Sr. No. Particulars per piece Cost/ unit in Rs.

1 Fabric- 4 mt/ track suit (Different Colours) 200/-

2 Threads-12/-
3 Chains (ZIP), buttons-20/-
4 Elastic tape, lasses-18- 77/-
5 Tags-5/-
6 Packaging & branding5/-
7 Marketing cost- 3/-
8 Embroidery charges-8/-
9 Washing Detergent-3/-
10 Misc.-3/-
Total 277/-

• Total material cost for the production of 434 units per month (@ 18 Units
per day for 24 working days) = 434X277= 120218 Rs. Per month

Sporto-Track
Other Contingent
Expenses (Per Month)
• Postage/Stationery : Rs. 200
• Repair and Maintenance : Rs. 200
• Transport Charges : Rs. 2000
• Electricity Charges : Rs. 1500
• Rent of Building : Rs. 1500

• Total : Rs. 5400

Sporto-Track
Recurring Expenses
Per month
Head Total Cost (in Rupees)
Working Capital 36000
Raw Material ( 434 Units ) 120218
Other Contingent Cost 5400
Total recurring cost per month 161618

Sporto-Track
Total Capital
Investment
Heads Investment in Lacs Rs.
Machinery & Equipments 1.82
Working Capital for 2 Months 0.72
Total 2.54

Provisioning Funds 4.53-2.54=1.99

Sporto-Track
 Financial Analysis
(Per Year)
Cost of Production (Per Year) Rs. In lacs
Recurring cost 19.32
Depreciation on machinery and equipments, Office 0.27
furniture @15%
Interest on total investment @ 12% 0.30
Total 19.89

Cost of Production (Per Year) Rs.

Total Production cost 1989000
Per unit production cost (Total cost/total units) 417
Other contingent cost 10% of total cost 41.70
Profit Margin 15% 62.30
Total per unit Production Cost 521

Sporto-Track
 Turnover (Per Year)
Product Qty. Rate/Pc Amount
Track Suit of different size 4774 547 26.11
*GST as per applicable, 5% for stitched
garments

Net Profit (Per Year)

Net Profit (Per Year)- Turnover Per Year- 26.11-19.89 = 6.22
Total Financial Investment per year
Net profit ratio (Net Profit/Turnover) 23.82

Sporto-Track
Break-even Point
Fixed Cost Rs. In Lacs
Depreciation on machinery and equipments, 0.27
Office furniture @15%
Interest on capital investment 0.30
40% of wages of SHG members 1.73
40% of other contingent expenses 0.26
Total 2.56
B.E.P. FC × 100
--------------
FC+ profit

2.56X100
-------------- = 29.15
2.56+6.22

Sporto-Track
 Break-even Point
Units Total Cost Total Revenue
3,000,000 600

2,500,000 500

2,000,000 400

1,500,000 300
Break-even Point

1,000,000 200

500,000 100

- 0

Sporto-Track
Addresses of Machinery
and Equipment Suppliers

• M/s. Bharat Machinery Works • M/s. Sagaritans Agency Divn.

44, Industrial Area-A, 46-A, Rafi Ahmed Kidwai
Ludhiana Pb. Road,
Kolkata-16.
• M/s. Moonlight Knitting
Machinery Works • M/s. Swarup Mechanical
Vishvakarma Colony, Works
Ludhiana.
Overlock Building,
• M/s. S.T.M. Knitting Machinery Overlock Road,
Works Ludhiana-141003
Near Savitry Complex,
G.T. Road, • M/s. Rajan Hosiery Industries
Ludhiana. 21-B, New Qutab Road,
Near Sadar Bazar,
• M/s. Punjab Machinery Works
Vishvakarma Chowk,
Delhi-6.
Near Fire Brigade,
Ludhiana.

Sporto-Track
Addresses of Raw Material
Suppliers

• M/s. Mahavir Spinning and General Mills

Hoshiarpur (Punjab)
• M/s. Adinath Textiles Ltd.
Registered Office,
Village: Bholapur,
P.O. Sahibana,
Chandigarh Road, Ludhiana.

Sporto-Track
Social Impact
• Involve others SHGs-50% of units will be sold
through SHG network
• Total Units produced =4774
• 50% of total units =2387
• Total Profitability for SHGs = 2387*200 =4,77,400 Rs.

Sporto-Track
Future prospects
Explore the potential raw material.
Use of technology and processing of raw material
as per the demand of current market.

Sporto-Track
NOTHING CAN DIM THE LIGHT WHICH SHINES

Thank you
FROM WITHIN

Sporto-Track